Australia’s Energy Security and Statecraft in an Era of Strategic Competition

Abstract

Previously published studies on Australia’s energy security did not examine the country’s domestic energy security situation in tandem with its international energy statecraft. This paper fills this research gap. In order to provide a robust analysis of a country’s strategic options in the energy sector, it is paramount to balance domestic and international dimensions, along with internal and external factors. The paper utilizes the strengths, weaknesses, opportunities, and threats (SWOT) method to review Australia’s strategic options by balancing the inward-looking, domestic risk minimization dimension (energy security), with the outward-looking, international power projection dimension (energy statecraft). The paper also applies the 4A framework (availability, accessibility, affordability, and acceptance) to assess Australia’s energy security performance. On the one hand, the results demonstrate that Australia has many strengths and opportunities as a reliable and stable energy supplier, endowed with traditional and renewable energy resources, and critical minerals. On the other hand, numerous internal weaknesses and external threats may affect Australia’s strategic options in the future. The most pressing issue is the historical lack of strategic government intervention in the energy market, which has, paradoxically, resulted in domestic energy accessibility and affordability crisis. The market-based approach is also the main reason why Australia has not transformed its energy resources into capabilities to be used as instruments of statecraft. The paper uses the SWOT analysis and the 4A assessment as the basis for discussion on how Australia can transform its energy sector weaknesses and threats into strengths and opportunities, to benefit the national interest.